US Dollar Gains Against Commodity Currencies

Early on Monday, the US dollar continues to strengthen against commodity currencies like the AUD and NZD, even after the OPEC+ agreed to massive cuts in oil production to offset falling demand for oil worldwide. At the time of writing, the US dollar index DXY is trading around 99.45.

Financial markets are starting this week on a risk-off note with crude oil prices and stock markets on the decline over escalating worries about the extent of economic impact of the pandemic globally. Despite the extended shutdown in force across several countries around the world, the number of coronavirus cases and death toll continue to rise, showing no signs of peaking in the worst affected regions, adding to worries.

Meanwhile, the US dollar is trading weaker against the Japanese yen as investors focus on the latter’s safe haven appeal over Japan’s surplus current account. Expect trading volumes and volatility to be on the lighter side on Monday as some markets across APAC and Britain remain closed for Easter.